Brazil's National Programme for the Strengthening of Family Farming (Pronaf) finances individual or collective projects that generate income for family farmers and agrarian reform settlers. The programme has the lowest interest rates out of all rural financing options.
Access to Pronaf begins when the need for credit is detected, be it for issues related to the harvest or agro-industrial activity, for investment in machinery, equipment or infrastructure, or for agricultural services or not.
Once the decision is made as to what is to be financed, the family must turn to the rural union or the Technical Assistance and Rural Extension company to obtain the Declaration of Aptitude to Pronaf, which will be issued according to the annual income and activities, directing the farmer to the lines of credit to which he or she is entitled.
The different credit lines are:
Pronaf Trustee
It is intended to finance agricultural activities, processing, industrialisation and commercialisation of own production or that of third parties within the framework of Pronaf.
- Pronaf “More food” - Investment
Aimed at financing the implementation, expansion or modernisation of production infrastructure and services, whether agricultural or not, in the rural establishment or in nearby rural community areas.
- Pronaf Agroindustry
This is a line for financing investments to process and market agricultural and non-agricultural production of forest products or artisanal products, as well as rural tourism.
- Pronaf Agroecology
Line to finance investments in agro-ecological or ecological production systems, including costs related to the implementation and maintenance of the project undertaken.
- Pronaf Eco
Line to finance investments in techniques that minimise the impact of activity on the environment, as well as allowing better coexistence with the biomass in which it is embedded.
- Pronaf Forestry
Financing of investments for agroforestry systems, ecologically sustainable extractive exploitation, forest management plan, recomposition and maintenance of permanent conservation areas and reserves, and recovery of degraded areas.
- Pronaf Semi-Arid
Line of financing for projects in the semi-arid region of the country, focused on the sustainability of agroecosystems, prioritizing water infrastructure and implementation, expansion, recovery or upgrading of other infrastructure.
- Pronaf Mulher
Line to finance investments proposed by women farmers.
- Pronaf Youth
To finance investments by young farmers.
- Pronaf Trustee and Commercialisation of Family Agro-Industries
Intended for farmers and their cooperatives or associations to finance their own and third party processing and industrialisation needs.
- Pronaf Cota-Partner
Financing of investments for the purchase of shares of family farmers affiliated to production cooperatives or for application in working capital, costs or investment.
- Rural Microcredit
Aimed at low-income farmers, it allows the financing of agricultural and non-agricultural activities, and the credits can cover any demand that may generate income for the family.
This programme began in 1996, under the government of Fernando Henrique Cardoso and was suspended by the government of Bolsonaro in the spring of 2019.
Last updated: 2019
- Regulating
- Kick-starting
- Local institution